HSBC introduces 5.5x LTI for first-time buyers

HSBC UK has introduced a new 5.5x loan-to-income (LTI) multiple for first-time buyers.

The 5.5x LTI multiple is available to first-time buyers who meet certain criteria, including a minimum sole income of £35,000 or a minimum joint income of £55,000, alongside the bank’s affordability checks to confirm long-term suitability.

In addition, customers moving home or remortgaging with an income above £45,000 may also benefit from higher LTI multiples, ranging from 5.0x to 5.5x depending on loan-to-value and income.

Oli O’Donoghue, head of mortgages at HSBC UK, said: “There are significant challenges facing first-time buyers today, from finding a deposit that is likely to be tens of thousands of pounds, to rising property prices.

“By increasing our LTI multiple we aim to provide extra support to those who are ready to take this important step.

“Affordability remains central to every lending decision, but extending our lending limits will provide extra firepower to those looking to get onto the property ladder.

“A higher LTI multiple allows us to consider a broader range of applicants, but every mortgage application will still be individually assessed to ensure the borrower can comfortably manage their repayments, even in a changing economic environment.

“Our commitment to responsible lending is unwavering, and we believe this new policy strikes the right balance between helping aspiring homeowners and protecting them from financial hardship.”